value chain/ market analysis of the orthodox tea sub ... - Nepal Trade

orthodox tea is consumed domestically. Through discussion with several shopkeepers inKathmandu, it was learned that 60 percent of tea buyers are Nepalese nationals and the restare foreign nationals. Various brands of orthodox tea are available in the market includingforeign brands, mainly from India and Sri Lanka.2.3.4 Price trends of Orthodox TeaThe price of orthodox tea varies and is dependent upon the type, grade, and quality of tea aswell as the importing country. Samples are sent to the buyers and are usually tested by teatasters who determine the quality. Although claimed to be of the same quality as Darjeeling,Nepalese orthodox tea is sold for a lesser price. In discussion with traders, the average priceoffered per kg for Nepalese tea in Kolkata is 240 to 272 NPR. However, the price can vary alot depending upon the grade and quality and is finalized upon negotiation with Indianimporters/agents.Overseas sales are mostly leaf grade. The export market is more of buyers market. Usuallybuyers fix the prices on the basis of submitted sample and evaluated for taste, liquor,infusion, flavor and characteristics. As per discussion with some traders, the average pricerealized per kg for leaf grade is USD 6 to 10. Specialty tea like white teas , silver tips, greentea, oolong tea fetches are produced in low quantity and are sold at 4 to 5 times higher pricethan normal leaf tea grade. The composite price of tea from the FAO is presented below.Figure 13 Composite price of teaSource: FAO website3. VALUE CHAIN ANALYSIS3.1 Value chain mapThe value chain map of orthodox tea is presented in Figure 14 below. A brief description ofeach actor and enabler is presented in section 3.3.Value Chain/Market Analysis-Orthodox Tea 19